© 2010 forrester research, inc. reproduction prohibited

© 2010 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited

OSS Adoption Patterns In Enterprise IT

Jeffrey Hammond, Principal Analyst

August 11, 2010

When it comes to Enterprise IT adoption, Open Source Has “Crossed the Chasm”


A word about the surveys used in this deck…

1. Forrester‟s Enterprise And SMB Software Survey, North America

And Europe, Q4 2008/9(2227/2165 total – 1114/940 for

Development)

Primarily Directors, VP App Dev, VP I&O, CIO

2. Forrester – Dr. Dobbs Developer Technographics Q3 09 (1298

total)

Mostly developers – slightly skewed toward systems and .NET

3. 2009/2010 Eclipse Community Survey ( 1498 total)

Mostly developers – skewed toward Java


Market Trends And OSS Evolution

Examples And Best Practices

Agenda


0% 10%20%30%40%50%60%70%80%90%100%

Reduce IT costs

Improve integration between apps

Use IT to increase innovation

Support regulatory reqs.

Improve communication of IT value to business

Increase ability to meet unmet demands for IT services

Address IT staffing and skills challenges

Expand use of open source software

Reducing number of (major) software vendors we work with

Expand use of SaaS

Move some/more apps to off premise providers

1-Not at all important 2 3 4 5-Very important Don't know

In 2009 integration and innovation were top of mind

Source: Enterprise And SMB Software Survey, North America And Europe, Q4 2008

Base: 2227 software decision-makers at North American and European enterprises and SMBs

???

“Thinking of your firm‟s current planning cycle, how

important are each of the following goals?”


0% 50% 100%

OSS

Business Process Management(BPM)

Mobile tools/middleware

Advanced analytics

Data Services/Information as a Service (IaaS)

Information Lifecycle Mgmt (ILM)

Application Lifecycle Management(ALM)

PaaS/Cloud

Rules

Complex Event Processing(CEP)

Enterprise Service Bus (ESB)

Expand/ Upgrade existing implmentationImplementing/ Implemented

Piloting

Interested/ Considering

Decreasing

Removing

Not Interested/ Don't know

Adopting OSS was an important technology goal



“What are your firm‟s plans to implement or expand its use of

the following software technologies in the next 12 months??


0% 50% 100%

Reduce costs

Improve business process execution speed

Support company growth

Improve integration between apps

Support regulatory reqs.

Be more nimble as the firm change business processes

Improve collaboration and information exchange

Increase innovation

Support our company's sustainability goals


IT is leaning out for growth at speed in 2010



“How important are each of the following business goals to your

internal IT organization when making software decisions?”


0% 50% 100%

Update/modernize key legacy apps

Increase deployment/use of collaboration tech

Upgrade enterprise apps

Reduce number of major vendors we work with

Expand use of Agile software dev.

Increase use of SaaS/Cloud

Increase use of OSS

Implement "green" software tools

Consolidate or rationalize enterprise apps


Urgency to adopt OSS is fading…



“How important are each of the following business goals to your

internal IT organization when making software decisions?”


…because it‟s now widely adopted…

Source: Forrester -Dr. Dobb‟s 2009 Developer Technographics Survey, Q3 2009

Base: 1,298 development pros at North American and European enterprises and SMBs

“Which of the OSS infrastructure tools have you included as part of your

development activities or deployed an application or software project to?“

(Select all that apply.)

3%

4%

7%

7%

10%

21%

22%

28%

45%

45%

46%

48%

57%

Portals or mash-up servers (e.g. Liferay, Dapper)

Business applications (Sugar CRM, Bravo)

Other, please specify

Business Intelligence tools (e.g. BIRT, Jasper Reports, Spago)

Content Management Systems (e.g. Alfresco, Drupal)

Have not used OSS as part of my development projects

Application frameworks (e.g. Spring, Rails, Zend)

Application servers (e.g. JBoss, Glassfish, Tomcat)

Web servers or networking components (e.g. Apache, Samba, Radius)

Databases (e.g. MySQL, PostgreSQL, SQLLite)

Development IDEs (e.g. Eclipse, NetBeans)

Operating systems (e.g. Red Hat Linux, Suse, OpenSolaris)

Programming languages (e.g. PHP, Ruby, Python, Java)


…and management has caught up to developers

Source: Forrester -Dr. Dobb‟s 2009 Developer Technographics Survey, Q3 2009, Enterprise And SMB Software Survey,

North America And Europe, Q4 2009

Base: 1,298 development pros at North American and European enterprises and SMBs and 1,298

development pros at North American and European enterprises and SMBs

“Which of the OSS infrastructure tools have you included as part of your

development activities or deployed an application or software project to?“

(Select all that apply.)

3%

4%

7%

7%

10%

22%

28%

45%

45%

46%

48%

57%

4%

7%

6%

6%

12%

13%

35%

58%

58%

24%

61%

55%



Other, please specify





Web servers or networking components (e.g. Apache, …






11%

15%

17%

65%64%

8%

16%

46%

33%

68%

60%












20000+

5000-19999

1000-4999

500-999

100-499

20-99

OSS adoption by company size

“Which of the OSS infrastructure tools have you included as part of your development

activities or deployed an application or software project to? “(Select all that apply.)




8%

12%

9%

18%

10%

41%

66%

71%

30%

63%

68%

4%

6%

6%

11%

14%

36%

60%

56%

23%

63%

55%












UK

Canada

US

Germany

France

US adoption is closing the gap with Europe






8%

13%

13%

50%

73%

41%

76%

70%

20%

71%

21%

44%












Retail/Wholesale

Manufacturing

Business Svc/Const.

Public Sector/Govt.

Fin Svcs.

Media, Ent. Leisure

Utilties/Telco

Telco, MEL & Fin Svc lead industry adoption






At the operating system level - development

62%

7%

14%

3%

3%

3%

1%

2%

1%

1%

54%

7%

17%

4%

3%

2%

2%

3%

0%

1%

71%

5%

4%

3%

2%

1%

5%

1%

3%

5%

Windows

Mac OSX

Linux-Ubuntu

Linux-Fedora

Linux-SUSE

Linux-Debian

Linux-RHEL

Linux-Other

Solaris

Other

Eclipse - 2009

Eclipse - 2010

Dr. Dobbs

“What is the primary operating system you use for development” (Choose one)

Eclipse 2009 – 26%

Eclipse 2010 – 30%

Dr. Dobbs – 16%

Base: Base: 1481 application development professionals, 1948 application development

professionals, 1298 application development professional

Source: 2009 Eclipse Community Survey, Q2 2009, 2010 Eclipse Community Survey, Q2 2010, Dr. Dobbs Developer

Technographics Q3,2009


At the operating system level - deployment

37%

3%

11%

3%

5%

6%

9%

5%

5%

9%

36%

2%

11%

3%

4%

8%

8%

5%

3%

7%

57%

1%

4%

2%

2%

1%

9%

5%

4%

11%

Windows

Mac OSX

Linux-Ubuntu

Linux-Fedora

Linux-SUSE

Linux-Debian

Linux-RHEL

Linux-Other

Solaris

Other

Eclipse - 2009

Eclipse - 2010

Dr. Dobbs

“What is the primary operating system you use for deployment (Choose one)

Eclipse - 2009 – 39%

Eclipse – 2010 – 40%

Dr. Dobbs – 23%

Base: Base: 1481 application development professionals, 1948 application development

professionals, 1298 application development professional

Source: 2009 Eclipse Community Survey, Q2 2009, 2010 Eclipse Community Survey, Q2 2010, Dr. Dobbs Developer

Technographics Q3,2009


*Source: 2010 Eclipse Community Survey

† Source: Forrester -Dr. Dobbs 2009 Developer Technographics, Q3 2009

At the app server level

30%

9%

5%

3%

3%

3%

1%

1%

27%

3%

5%

29%

20%

14%

14%

4%

2%

3%

1%

7%

0%

6%

Apache Tomcat

Red Hat JBoss

IBM Websphere

Oracle Weblogic

Sun Glassfish

Jetty

Oracle AS

SAP Netweaver

None

Don't Know

Other

Eclipse*

Dr. Dobbs†

“What is the primary app server you typically use for deployed applications?” (Choose one.)

*Base: 1948 app dev professionals building server apps and programming in Java

† Base: 218 app dev professionals building server apps and programming in Java at least 50% of the time


At the DBMS level

28%

19%

7%

10%

4%

1%

13%

6%

15%

17%

32%

5%

4%

2%

18%

7%

MySQL

Oracle

SQLServer

PostgreSQL

DB2

Sybase

None

Other

Eclipse*

Dr. Dobbs†

“What is the primary app server you typically use for deployed applications?” (Choose one.)


† Source: Forrester -Dr. Dobbs 2009 Developer Technographics, Q3 2009

*Base: 1948 app dev professionals building server apps and programming in Java

† Base: 218 app dev professionals building server apps and programming in Java at least 50% of the time


*Base: 1,948 application development professionals

† Base: 1,298 application development professionals

At the SCM level

52%

11%

1%

3%

1%

3%

6%

3%

5%

1%

3%

32%

13%

12%

6%

9%

5%

2%

1%

8%

0%

13%

Subversion

CVS

Microsoft VSS

IBM Rational ClearCase

Microsoft TFS

Perforce

Git/GitHub

Mercurial

None

Don't Know

Other

Eclipse*

Dr. Dobbs†

“What is the primary SCM system you typically use?” (Choose one.)


† Source: Forrester -Dr. Dobb‟s 2009 Developer Technographics, Q3 2009


Why developers drive adoption of OSS

Source: February 2, 2009, “Best Practices: Improve Development Effectiveness Through Strategic Adoption Of Open Source”

Forrester report

The software “iron triangle”

1. Cost

2. Speed

3. Integration


Adoption paths are shifting toward devs

Developers resist technology that

doesn‟t meet their needs

Traditional financial controls are of

limited value

LOBs defends dev teams that

produce value

Management is willing to yield when

a “win-win” results

The path from developer to customer

is getting shorter

Developer productivity is no longer

the problem

CIO

ADEA I&OPMO

BAs QAArch Dev

More than ever: Developers can

block – or significantly aid the

adoption of software!


But executives are starting

to reassert control!

A shift in decision makers affects adoption

Time

RevenueIBM, Oracle, SAP, and HP

Red Hat, Atlassian,

SpringSource, and Adobe

Skimmers

PenetratorsMicrosoft

Executives

Developers

Who‟s in

charge?


What it means

Economic uncertainty and cost reduction was driving OSS adoption, now

were shifting toward speed and innovation

Continental Europeans lead in adoption but the US is catching up

Very small and very large organizations have “more time than money”

As OSS business models evolve, concerns over viability and IP are

receding

Developer adoption of Linux continues to trend upward, and a focus on UX

pays off

The enterprise software market and the OSS market are set for an

inevitable collision, and then a convergence

To win you must drive adoption and affirmation through developers, and

purchases through management


Market Trends And OSS Evolution

Examples And Best Practices

Agenda


Case Study 1: Leading fin services firm

Provides asset management, investment banking, private

banking, treasury and securities, and commercial banking.

Using Linux since 2001, OSS now moving up the stack.

Using OSS app server keeps big ISVs honest.

Need good developers – not average ones.

Used OSS as an opportunity to refashion dev processes.

Now looking at BI, using a lot of Spring

Need to manage the support „fear factor‟

Dev community very happy, I&O is mixed

Result: Per project software costs savings range from 30%

to 80%. For every $10 they put in, they get $4 back.


Case Study 2: Global fin services firm

Market leader in securities, asset management and credit

services

Replacing proprietary ECM with Alfresco – in production since 2007

Extensibility and flexibility due to OSS and APIs

“First major firm to do Linux as a strategic play”

Still evaluate commercial option – but license costs are increasingly

untenable

Have created their own fork, and work with Alfresco to manage

change delivery back to trunk

Result: Reduced upgrade costs compared to commercial

solutions by high 6 figures


Case Study 3: Sabre

Leading provider of technology and marketing services for

the travel industry

Rewrote z-based reservation app using scale-out arch with Linux,

Tomcat, FUSE – now running at peak volumes on 6 M tpd

Need to make investments in architectural competency

Acquisition policy “OS first, buy next, build last”.

Took three tries to get it right

Anticipate higher costs of training, risks of proliferation

Always buy support

Result: Saving millions over multiple years vs. mainframe

environment.


Case Study 4: Landmark Graphics

Landmark Graphics supplies software to Oil and Gas

industry across a broad variety of application areas

OSS Steward monitors policy compliance

Prioritize standardization

Restructured release process

– Use BDS to monitor compliance

– PM assumes responsibility for OSS

– Remediate if/as violations are found

Contributing back in limited cases

Result: Rapid adoption of the latest models and technologies,

with accurate identification of OSS dependencies


Case Study 5: Reliant Security

Reliant sells PCI compliant in-store systems that include

many OSS subsystems.

Set a clear policy for OSS use

Tuned acquisition policies

– OSS first mandate

– Prioritized “ilities”

– Loosely coupled design

Adjusted dev processes

– OSS use identified at design

– Developer on the hook for provenance

Result: Significant customer savings (7 figures in large

deployments) over commercial alternatives


Case Study 6: European Airline

Global carrier created by merger of two large carriers

Set a goal for tactical cost savings in operations

Replaced Solaris and AIX as base OS supporting SAP

Rolled out a combined SAP implementation on Linux

Result: Savings of close to E 1 million.


10 Best Practices From Enterprise OSS Adopters

1. Appoint an OSS steward

2. Create a comprehensible policy

3. Frontload acquisition processes

4. Require project leaders to identify OSS dependencies

5. Use EA to regulate exploitation and maintenance

6. Trust teams - but verify with code-scanning utilities

7. Maintain a repository of preapproved OSS components

8. Don't dwell on processes and artifacts; focus on outcomes

9. Don't expect perfection, and plan for remediation

10. Set a contribution policy – it will happen over time anyway


Companies may be slow to contribute, but not devs…

Source: Forrester -Dr. Dobb‟s 2009 Developer Technographics Survey, Q3 2009

Base: 914 development pros at North American and European enterprises and SMBs

“Please select any statements that describe you as a

developer.” (Select all that apply.)

60%

39%

21%

20%

15%

12%

5%

Engaged in developing on 1 or more side projects outside business

Attend local user group meetings

Published 1 or more articles about software dev

Contributor to 1 or more OSS projects

Hold 1 or more patents

Recognized by 1 or more ISV programs

Written 1 or more books


What it means – Looking ahead

Open source adoption is moving from “don‟t ask, don‟t tell” into a period of

strategic adoption

Business critical OSS systems exist; they work and they scale

IT is still learning about different OSS business models – help them

understand

It‟s time to focus on the secondary virtues of OSS, speed, flexibility and

engagement

Most companies aren‟t averse to paying for value fairly delivered

Contributions from IT developers are coming, but not through official

channels – need to work to assuage their concerns over risk

It‟s not really about the Cathedral OR the Bazaar – it‟s more about a mixed

source combination

© 2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Jeffrey Hammond

+1 978.226.8886

[email protected]

Twitter: jhammond

www.forrester.com

© 2010 forrester research, inc. reproduction prohibited

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